The final or the third revision to the fourth quarter GDP for 2016 will be released today by the US Department of commerce. But despite the slightly hawkish expectations/forecasts given for the data today, it is unlikely that the final revised GDP will impact the markets much. At best, expect a knee-jerk reaction while the existing trends are likely to continue in the near term.
Economists polled are expecting to see the US GDP expand 2.0% as of the third revision, slightly higher from 1.9% that was registered during the second revision released on February 28, which saw an unchanged print at 1.9% from the initial estimates.
Overall, the GDP figures for the fourth quarter reveal a weaker pace of growth, following a 3.5% GDP expansion registered during the third quarter. At 1.9% year over year GDP growth, the data was in line with the average 2% expansion which has been in place since the crisis of 2008.
US consumers continue to remain at the forefront, driving the economy. At the second revision, US consumer spending rose ending was boosted by a tighter job market which is continuing to absorb the remaining slack, while lower borrowing costs and rising confidence have helped to bring optimism to the consumers.
Read more: https://www.orbex.com/blog/2017/03/us-final-gdp-revision-unlikely-impact-markets/